Inc. vs LLC

Discussion in 'Business Operations' started by Shuter, Aug 16, 2004.

  1. Shuter

    Shuter LawnSite Bronze Member
    Messages: 1,171

    I have taken on a new venbture with another landscaper in town. We are starting a new company and in the next two years we will rollover our two companies into the new one. We are both DBAs and need to Inc the new company. Question is what are the opinions on Inc. vs LLC ???? Thanks
  2. Shuter

    Shuter LawnSite Bronze Member
    Messages: 1,171

    Sorry - Venture (I type fast and make mistakes)
  3. furball3

    furball3 LawnSite Member
    Messages: 59

    LLC is my 2 cents.

    Wont be double taxed like what is possible being INC'd. Still protected against being sued for personal property. Less paperwork involved compared to being a formal corp too.

    Unless you plan on going public at some time and selling stock to the public I dont see any reason for INC's.
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    S corporations, like LLCs, don't suffer from double taxation .... a C corporation only has double tax on the dividens given to share holders ... n no reason to form a C Inc when a S Inc is very easy

    I'm an S Corp .... this was years ago n the legal aspect of n LLC was not tried n tested in the courts .... so it's going to be a matter of opinion for today .... some reason for the S Corp was

    W/C exception for officers of the Inc not sure if this is the same with LLC

    Ease of transfer of businesss ... hey I'm not going to cut grass forever n when I sell it will just be a matter of selling off my stock shares ..... LLC this is not that easy .... LLC were first set up as trust of family's .... stayed in the family name ... transfer is complicated .... later in the 90's became popular as foundation of small business whom seeked the protection of the LLC in liability's & had less yearly paper work ( 1 piece of paper I sign each year with a check of $150)

    Ease of "perks" enjoyed as an officer of the inc. .... company vehicle, insurance, travel (business related) cloth, food etc. ...I'm sure this must be the same in an LLC but I don't know as I am not one

    Do a search on the web than consult your CPA & Lawyer
  5. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

    Hi Shuter,

    Here is a similar post that might offer you more information.

    LLC or INC.

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